Theme: Law and Economics
Paper Code: A1 Spe 27
Customised Agricultural Information Delivery as a Mechanism for Enforcing
Agricultural Input Laws
Gopal Naik
Professor, Economics and Social Sciences, Indian Institute of Management, Bangalore; India.
Aparna Krishna
Doctoral Student, Centre for Public Policy, Indian Institute of Management, Bangalore; India.
ABSTRACT
Among various factors important to increase agricultural productivity; judicious use of good
quality inputs, namely water, seeds, fertilizers and pesticides is recognised as one of the most
important. In our study we try to see whether proper and timely agricultural information
delivery can help solve problem of spurious agricultural inputs, which the various laws and
regulations have failed to do.
Spurious/low quality inputs result in crop yield losses while increasing the expense incurred
by farmers on purchased inputs and also cause environmental damage. Spurious products
have been called one of the man-made disasters which compound the several other problems
that agriculture faces (Raju & Chand, 2008 ). We delve into reasons of why laws for dealing
with problem of spurious inputs have been ineffective; some laws encourage rent seeking
rather than rectify the problem as currently they solely rely on state inspectors to determine
authenticity of various inputs rather than help farmers identify spurious inputs and report the
same.
Through a project conducted in Karnataka that used Information and Communication
Technology to deliver information to six hundred farmers though experimental design, we
show that proper use of good quality inputs can help increase farmer yields. We also see a
significant change in expenses incurred by cotton and paddy growing households on
fertilizers and insecticides. Anecdotal evidence from farmers shows that through the
education they received on identifying spurious inputs from genuine ones they were able to
avoid losses that they earlier had been occurring.
We suggest that if government invests more in information delivery; one of the modules
being recognising genuine inputs which, among other benefits, would result in more
informed farmers who then can report presence of spurious inputs in their areas, thereby
leading to a less corrupt and more efficient law enforcement mechanism.
Keywords: agricultural information delivery; spurious agricultural inputs; agricultural input
laws; information and communication technology; field experiment
Paper Code: A1 Fl 40
NEED FOR INSTITUTIONAL ARBITRATION IN CONSTRUCTION CONTRACTS IN INDIA
Mohana Raje, Faculty-Law, Welingkar Institute of Management Development and Research,
Mumbai
Kavita Kalyandurgmath, Prof. Operations, Welingkar Institute of Management Development
and Research, Mumbai
Jagdish Raje, M. Tech, MRICS, M.ASCE, Director GEMENGSERV Pvt. Ltd
Abstract:
Indian Arbitration and Conciliation Act1 1996, was enacted by the Parliament based on the
model UNCITRAL Law so as to facilitate Indian trade and commerce in the global economy.
The act was seen as a panacea by the Indian industry and professionals. All the stakeholders
expected a faster resolution of disputes and verdicts consistent with the industry norms at
lesser costs. However soon it was discovered that the process of Arbitration was controlled
by the legal community, judicial interventions were frequent and disrupting, resulting in
uncontrollable costs. The verdicts were found to be legally correct but inconsistent with
industry practices. Sector that suffered the most of was the construction sector.
Almost every construction work has disputes. The money under dispute either directly or as a
compensation may be in crores. Though the present arbitration act, allows different kinds of
arbitration, there is almost a norm to use ad-hoc arbitration and appoint non-technical but
legally qualified personnel as arbitrators. It has been found that such appointments tend to
delay the process of dispute resolution due to time taken by such arbitrators to understand
technical issues and many times the arbitral award though consistent with legal requirements
is found wanting in consistency with industry practices. The resolution of such disputes needs
a deep understanding of the industry practices, sequence of events and the cascading effects
of the causes.
This study identifies and examines the factors influencing resolution of construction disputes
in the construction industry due to ad-hoc dispute resolution.
A survey was conducted by the Researcher to find the reasons that contribute to the delays in
the Alternative Dispute Resolution process through a questionnaire with engineers, lawyers
and arbitrators as respondents.
Key words: Dispute Resolution, Arbitration, Construction, Technical personnel, ad-hoc
dispute resolution.
Paper Code: A1 Spl 47
Mergers, Acquisitions and Competition: A Study of Indian Cement Industry
Neha Jaiswal, Doctoral Research Scholar, Rajiv Gandhi School of Intellectual Property Law, Indian Institute
of Technology Kharagpur, Kharagpur 721 302
Pulak Mishra, Associate Professor, Department of Humanities and Social Sciences, Indian Institute
of Technology Kharagpur, Kharagpur 721 302
Indrajit Dube, Associate Professor, Rajiv Gandhi School of Intellectual Property Law, Indian Institute of
Technology Kharagpur, Kharagpur 721 302,
Abstract
Emergence of mergers and acquisitions (M&A) as strategies for restructuring and growth of
firms during the post-reforms period is well recognized in the existing studies. However, it is
also observed that the distribution of such deals is highly skewed towards a few industries
like cement raising concerns about market concentration therein. In cement industry in
particular, emerging oligopolistic market structure following M&A and cartelization by the
firms have become matter of serious concerns for the antitrust authority of the country. In this
perspective, the present paper makes an attempt to examine how M&A along with other
business strategies have affected the structure of market in Indian cement industry. The paper
uses panel data estimation techniques for a set of 12 firms over the period from 2000-01 to
2013-14. It is found that the strategies of M&A have resulted in greater market shares of the
merging and acquiring firms. In addition, the strategy of in-house R&D and selling related
efforts have also caused increase in market share of these firms, whereas vertical integration
and inventory management are found to have negative impact on the same. Interestingly,
profitability, capital intensity and technology purchase do not have any statistically
significant impact on firms’ market share. Hence, an ex-post scrutiny of M&A by the
antitrust authorities in combination with other business strategies is necessary to restrict anticompetitive behavior of the firms.
JEL Classification: D43, G34, L1, L2, L4
Key words: Mergers and Acquisitions; Market Concentration; Competiveness; Antitrust;
Cement Sector; India.
Paper Code: A1 Fm 64
Conflict, engagement and assimilation of Sri Lankan repatriates into
informal gold mining in Nilgiri-Wayanad region, southern India
AmalenduJyotishi, Professor, Amrita School of Business, Amrita ViswaVidaypeetham (University), Bangalore
Campus
SashiSivramkrishna, Project Associate, Amrita School of Business, Amrita ViswaVidaypeetham (University),
Bangalore Campus
ManaswiniKarthik, Project Associate, Amrita School of Business, Amrita ViswaVidaypeetham (University), Bangalore
Campus
KuntalaLahiri-Dutt, Senior Fellow, Resource Environment and Development Program, Crawford School of Public
Policy, ANU College of Asia and the Pacific, The Australian National University, ACT 0200, Australia
Abstract
Providing a source of livelihood for refugees, internally displaced persons and returnees is a daunting task for
societies. At a more mundane level, the foremost problem in dealing with protracted refugee and similar
situations is to provide them with livelihoods. Within the expansive informal sector, one activity that
symbolizes some of its most negative connotations is informal gold mining. Deep and dark underground
tunnels, unregulated use of explosives, primitive instruments compensated by hard labour, vulnerability to
respiratory disease, use of child labour and exposure to mercury are just some of the aspects of this activity that
takes the lives of many but at the same time provides a living to many hundreds of thousands of families
including refugees and other forced migrants. While there are some reports and photo-essays on informal gold
mining by refugees particularly in Africa, specific academic study of livelihood strategies of forced migrants in
informal gold mining are conspicuously absent.
This paper addresses this gap; it undertakes a microeconomic study of a community of forced migrants, Tamil
repatriates from Sri Lanka resettled in the Nilgiri-Wayanad region of southern India, who have turned to
informal gold mining as a source of livelihood. Most of the Ceylon repatriates were settled in Nilgiri district of
Tamil Nadu after a pact known as Shasti-Bandharanayake pact between the two premiers of India and Sri
Lanka. After resettling in the region, many of these repatriates got into informal gold mining activities. In this
paper, we attempt to understand why these Ceylon repatriates got into informal gold mining? How they
established themselves in this activity that requires engagement and confrontation with various stakeholders
(including the other gold miners, forest department, tea plantation owners among others). We attempt to identify
through the local discourse weather the displacement from their natural habitats due to repatriation, lack of
alternative employment opportunities and difficulty in assimilation in the local economy and society are some of
the critical factors explain the persistence of Ceylon repatriates in this informal gold mining activity.
Through a study of local history, collection of primary data and extensive interviews we have explored how
situations evolve through an intersection of events over centuries, developing unique complexities at any given
point of time. Adding a multi-stakeholder perspective to our research impels us to understand local nuances
including the predicament of the state in dealing with real situations. While we accede to the limitation that the
findings of our research cannot be generalizable to draw universal inferences, its strength is to highlight the
contrary; historical and local specificities cannot be ignored if voices of specific groups including those of
refugees and migrants are not to be lost in the dominant metanarrative of economic development.
Theme: Environmental Challenges
Paper Code: B1 Fl 36
Assessment of Execution Challenges in the Forest Rights act, 2006
Sharadindu Pandey, Assistant Professor (Strategic Management), Indian Institute of Forest
Management Bhopal.
Dhwani Sharma, Ph.D. in Law (NLSIU Bangalore), Assistant Professor, Bhopal School of
Social Sciences, Bhopal.
Abstract
Forest Rights act, 2006 intended to provide individual and community rights over the minor
forest produce. It intended to provide livelihood to more than 10 Crores of tribal population
in India, provided its execution carried out successfully. On the other hand, the act intended
to progress towards the goals of conservation of natural resources as per the national forest
policy. The primary responsibility of the execution lies with the states of India. There are
instances where the states innovate on the policy and where the clash between the common
guidelines and the state’s approach differ. If substantially affects the intended goals. There is
village level, Sub-Division level, District, and state level committees responsible for the
execution of the act. The present study compiles the archival sources found from the minutes
of the meetings available in the public domain from various states and execution levels. In the
content of the minutes available, the critical incidences are indentified as execution
challenges. Based on the nation wide data of proceedings of such meetings, a complete listing
of all the challenges is prepared. Wherever, there are the instance of repeat is observed, the
same is reported. An analysis with respect to the provisions of the act and the order is made.
The corresponding corrective action was also recommended. The primary research question
in the present study is the assessment of causes why the individuals and the community rights
claims are rejected. Whether there are institutional, legal, or subjective factors responsible for
this? The study proposes to list out all such factors in the different context of the execution. It
will also attempt to make recommendations related to the corrective actions, proactive,
reactive, and incremental and the transformational.
Key words: JFM, FRA, community rights, gram sabha, claims
Paper Code: B1 Fl 42
ECONOMIC ANALYSIS OF EMINENT DOMAIN IN INDIA WITH SPECIAL EMPHASIS ON SOCIAL
IMPACT ASSESSMENT, RESTRICTIONS IN CASE OF MULTI-CROPPED LAND AND CONSENT
CLAUSE
Shantanu Braj Choubey, Advocate, High Court of Judicature at Patna.
ABSTRACT
Eminent Domain, in essence, is about acquiring property through the ‘liability rule’. By
introducing concepts like Social Impact Assessment, Consent Clause and Restriction in case
of Multi-Cropped Land, the legislature in India tried to provide some safety valves upon the
arbitrary takings. These concepts have become the cause of a continuing political tussle
where one argues against them for the sake of expediency, while the other argues in their
favour claiming them to be beneficial for the protection of small land owners. The note will
examine this debate with particular consideration to the above mentioned three concepts,
which have given the colour of ‘property rule’ to the takings.
It also proposes to examine the effect of the 44th Amendment of the Constitution of India in
changing the status of the right to property from a fundamental right to a legal right. In the
context of the present study, it is pertinent to delve into the question whether this has resulted
in lower compensation for property rights leading to increased external costs?
The State has been condemning land for allocating it to other private entities, who are Higher
Valuing Parties, under the garb of ‘public purpose’. The author argues that such practices
lead to imposition of external costs and, thus, inefficiency. The present note will also assess
practices like straw purchasers, secret assembling of land, announcing sale only after
necessary plots of land are assembled, etc., in the shadow of the holdout problem in a country
after regularisation of land. It will further examine whether having a unified land acquisition
law in the whole of the country would produce a greater social value? It is proposed,
hereunder, that the government should form a separate body to exclusively deal with all
acquisitions at whatever level required.
Keywords: eminent domain, land acquisition, social impact assessment, consent clause,
multi-cropped land
Paper Code: B1 Spl 38
Need for Water Law in the era of climate change for Maharashtra Economy
Sneha Kumari, Yogesh Patil and Abhishek Behl
Symbiosis Centre for Research and Innovation,
Symbiosis International University,
Pune, India
Abstract:
Background: Maharashtra is well known for the farm crisis and highest number of farmer’s
suicide due to the environment challenges. As compare to the past the environment has
shown unpredictable change.Water availability has declined from 5150 cubic metresince
1947 to 2200 cubic metre in the year 2000. According to the estimations, the country will be
water stressed by 2017 when water availability will be only 1600 cubic metres.The research
question is Why Maharashtra is not capable of tackling the critical issues of water
distribution.
Purpose: The objective of the paper is to explore the drought affected areas which has led to
scarcity of water at house, hospital, agriculture and even for drinking and the measure taken
to deal with such situations.
Methodology: The authors in the present paper have used secondary data and critically
analysed few case studies on drought conditions of Marathwada and Vidarbha district. The
paper has come through an extensive study of the government measures and policies that
there is a need for water law.
Findings: The paper has discussed the water law and policies for sustaining water in drought
areas of Maharashtra.
Research Implications / Limitations: It’s high time now that one has to be prepared for the
future and the risks of water unavailability. Today the major issue of concern is the evil
impacts of climate change which has made the state as the drought capital of the country and
people to think for the need for water law.
Keywords: Water Law, Policy, Government measures, Drought, Climate change
Paper Code: B1 Spm 35
EKC: Unequal Impact of Environment Degradation in reference to the Fishing
Industry
Sharvari Dala, Ahmedabad University
Harsh Mehta, Ahmedabad University
Abstract
Environmental Kuznets Curve (EKC) has gained traction in analysis of economic
development and environment degradation, which more or less is in congruence with the
natural progression of the economic development from polluting to environmentally efficient
sources of production. This process of the evolving input mix in the country’s production
process tends to epitomize the process of Kuznets curve.
However ‘Sustainability’ is not a term associated with the fishery industry. Since the end of
First World War when industrial fishingpicked up it has had a dramatic negative effect on the
fragile ecosystems which had both economic and ecological costs.
The paper outlays the intricacies involved in deciphering the implication of externalities
caused by industrialization of fishing on small scale fishermen. Traditional Kuznets
Environment Curve focused on the industrialization process curing the environmental
externalities. However industrial,non-selective, large scale unsustainable fishing has
dismantled the ecological pyramid. The direct effects have been felt by small scale fishermen
who have been damaged by the widespread industrial fishing. There exists a constant strife
between the ecological constraints and economies of scale. This research extensively focuses
on the inequality caused by ecological imbalances. There exists an inbuilt debate on
environmental imbalances creating economic inequity for the bottom tiers. Ecological
constraints which industrial farming has been challenging has caused scales to tip in favour of
the large scale fishing. This Darwinian tipping of resources have lopsided benefits in favour
of industrial fishing causing discourses to be raised which have both political and economic
connotations.
The paper expounds on the policy implications that ill checked industrialized fishing has on
economic equality with reference to EKC. The economic morphology of fishing would
provide a vehicular understanding of the unequal burden sharing of environment degradation.
This paper would give an idea on how EKCs affects the KCs with reference to the fishing
industry.
Keywords: Environmental Kuznets Curve, industrial fishing, ecological imbalance, unequal
impact
Paper Code: B2 Fe 10
Solar Energy in Africa – Impediments, Political Programs and Success Factors
Prof. Dr. Martin Meyer-Renschhausen 15.8.2016
Hochschule Darmstadt – University of Applied Sciences
Fachbereich Wirtschaft – Darmstadt Business School
Haardtring 100
64295 Darmstadt
Mail: martin.meyer-renschhausen@h-da.de; and meyer-r@gmx.net
Abstract
While the markets for solar technologies are booming in most parts of the world the diffusion
of PV technologies in Africa is very slow. The paper analysis different solar market segments
like markets for off-grid and on-grid PV technologies and concludes that the market
development is very much different from that of European countries. Whereas in countries
like Germany most of the PV plant show a capacity between 1 and 10 kW in most African
countries 2 types of technologies are dominating: Pico PV with a capacity of less than 5W
and large utility size systems with a capacity greater than 1 MW. The market for bigger offgrid technologies and smaller on-grid technologies, offering a lot of job opportunities, is
hanging behind.
Keywords: PV-technology, Solar lamp, Solar Home System, back-up system, utility-size PV
plant, off-grid, on-grid
Theme: Consumer Contracts
Paper Code: C2 Spl 17
Consumer Learning and Trademark Dilution
Kamonluck Daengsophon, Student, Thammasat International Trade Law and Economics
(TITLE) Master Programme, Thammasat University, Bangkok, Thailand
Abstract
Consumers are imperfectly informed about product qualities, whereas consumers gather
more information by repeated purchases. Trademark identifies product qualities and
helps consumers form perceptions on a particular product relating their past to future
consuming experience. When consumers confuse on product’s information and
identification, so they purchase the wrong goods where its characteristics do not
conform to the past experience of consumers, causing trademark to be diluted. The
dilution can damage trademark effectiveness or increase search cost of consumer. This
paper analyses a process of trademark dilution – how consumers learn about the real
qualities of the product and its consequence on trademark’s value. In the long run,
consumers learn product’s expected qualities, which related to the value of the
trademark. Consumer’s perceptions are divided into exogenous qualities (characteristics
which consumer use to make a purchase decision, such as price and labeling) and
endogenous qualities (characteristics which are unobservable by consumers, such as
safety and nutrition). The perception affects trademark’s reputation and dilution. From
the perspective of consumers, trademark is important because endogenous qualities are
abstract. The transaction costs to learn endogenous qualities are significantly higher
than the transaction costs of learning exogenous qualities. Difference in transaction
costs between realizing exogenous and endogenous qualities determines cost of
consumer learning. If the expected endogenous quality changes, consumers may not be
able to notice. If the expected exogenous quality changes, consumers could notice and
related it as a signal of changes in endogenous qualities. When the trademark’s qualities
are inconsistent (different from consumer learning) on exogenous qualities, trademark
could be diluted because of consumer misperception.
Keywords: Trademark Dilution, Consumer Learning, Search Cost, Reputation and
Quality.
Paper Code: C2 Spm 26
Quantity flexible contract under information asymmetry
Dereje Asfaw and Sri Vanamalla V
Department of Industrial and Management Engineering
Indian Institute of Technology Kanpur
Kanpur 208016, India
Abstract
In this paper we design a quantity flexible contract in a two-echelon supply chain with a
single manufacturer and a single retailer. Here we consider specific type of products for
which the customers of the manufacturer’s product place orders with the retailer prior to the
beginning of the selling season. The exact demand is known to the retailer at the beginning of
the selling period once all the orders have been placed. We consider the demand patterns
during the period of the placement of orders from the customers as the private information of
the retailer. Under such an environment of information asymmetry we propose a contract
between the manufacturer and the retailer which enables the retailer to order the exact
realized demand from the manufacturer. We propose to develop and analyse the underlying
adverse selection model in a principal-agent framework. Our contract design enables a winwin situation for the manufacturer as well as the retailer.
Key words: supply chain coordination, quantity flexible contract, information asymmetry,
adverse selection , mechanism
Paper Code: D1 Sppsy 60
Gender Identity, Perceived Gender Discrimination and Stress Among Working
Professionals.
Ms.Navya Jain, Research Scholar, Department of Psychology, Jamia Millia Islamia
Dr. Meena Osmany, Assistant Professor, Department of Psychology, Jamia Millia Islamia
Key Words: Gender Identity, Perceived Gender Discrimination, Stress, Gender, Social
Identity
Abstract
Gender Identity is a concept of self with respect to social categories, the association of
oneself with a particular gender- male or female.Gender identity gives meaning to how
individuals think or act and thus affects the perception of their social roles at work and at
home. This suggests that one’s gender identity can be linked to how employees perceive their
treatment at work. Thus, gender identity may be associated with the perception of gender
discrimination. The experience of discrimination and unfair treatment due to one’s gender
can have negative implications such as resentment towards one’s supervisor or colleagues,
conflict, frustration, thereby elevating stress at work. This study examines the relationship
between gender identity, perceived gender discrimination and stress among employees
working across different professions (males and females). The purpose is to gauge the current
levels of gender discrimination and stress at the workplace and whether gender identity
creates a significant difference in the experience of gender discrimination and stress. A 16item gender version of the Collective Self-Esteem scale (Luhtanen & Crocker, 1992) was
used to measure gender identity. A four item Perceived Gender Discrimination Scale (Foley,
Hang-Yue & Wong, 2005) was used to measure the participants’ perception of gender
discrimination at work and a 24-item Professional Life Stress Scale (Fontana D, 1989) was
used to measure stress levels of the participants. The total sample consisted of 119 working
professionals, 50 males and 69 females. Results from t-test indicated a significant difference
between male and female working professionals on gender identity. Gender identity,
perceived gender discrimination and stress were found to be significantly correlated. Stepwise multiple regression analysis revealed that perceived gender discrimination is predicted
by gender identity and that stress is predicted by gender identity and perceived gender
discrimination.
Theme: Intellectual Property Rights
Paper Code: E1 Fl 25
Economic analysis of Pharmaceutical Patent regime in India: A study in light of pre and
post TRIPS regimes.
Hardik H. Parikh, Assistant Professor of Law, Gujarat National Law University,
Gandhinagar.
Abstract
Pharmaceutical patents are the most important aspects of the intellectual property
regime driven economy. India is always recognized as a pharmaceutical industry hub in the
world. However, with the implementation of TRIPS agreement in the year 2005 especially in
the field of patents, the said industry faced some fear of international aspects of strict patent
regime. The fear was visible in form of various patent infringement claims and shutdown of
various generic pharmaceutical industries which were governed and progressed under the
process patent regime. The adaption of international aspects are always measured through the
economic aspects and after 2005, the evaluation of pharmaceutical industries has become
very crucial. The post TRIPS regime emphasized on the product patent regime and due to the
same, many pharmaceutical unis are facing trouble in operation especially those which are
included in the generic drugs industries. Also the price increasing aspects are not apart. This
research paper will focus on various economic aspects of pre and post TRIPS pharmaceutical
patent regime. The basic economic concept cannot be discussed in absence of the
constitutional mandates and judicial decisions. Thus, the researchers want to justify the
concept of economic analysis of pharmaceutical patent regime in eye of international aspects
as well as the interest of people and genuine requirement of medicines. Finally, this research
will also consider the new IPR policy introduced by the government recently and it will also
justify the futuristic aspects of the implementation of the policy by virtue of suitable
amendments.
Paper Code: E1 Su 54
WTO Plus Issues, Mega Regional Trade Deals and Their Impact on Indian Economy: A
Factual Exposition
Rahul Arora, Research Scholar, and S.K.Mathur, Professor, HSS, IIT Kanpur
Abstract
The paper discusses the so called WTO plus issues. These are sometimes hidden through
in the fine print of the Mega Trade Talks including bilateral Free Trade treaties and the WTO
ministerial meetings. The paper discusses the downside impact of WTO plus issues on India.
The paper then discusses some corrective actions that need to be taken including providing
solutions to the core issues related to pharmaceutical investments and affordability and
accessibility of medicines to common citizens, inadequate investments in promoting
Research and Development in promoting effective antibiotics, government procurement for
fulfilling social, economic and security objectives, investor dispute settlements through local
courts, designing competition policies, promoting green investments, effective labour
standards, food security issues, trade facilitation, trade in Services, among other issues. The
paper keeps the TPP agreement and the usual WTO provisions as the two templates (acting as
barometers) for discussing the WTO plus issues. The paper has some important policy
recommendations for developing countries in general.
Paper Code: E1 FL 23
Arbitration in Intellectual Property Disputes Resolution
Dr. Vandana Singh , Assistant Professor, Guru Gobind Singh Indraprastha University, Delhi.
ABSTRACT
Intellectual property rights are as strong as the means to enforce them. There is a growing
interest in resolving intellectual property rights disputes through arbitration and mediation
rather than adversarial methods of dispute resolution through State courts especially when
involving parties are from different jurisdiction which may gives rise to issues of conflict of
laws. In that context, arbitration and mediation as a private and confidential procedure, is
increasingly being used to resolve disputes involving intellectual property rights. In 2014, the
World Intellectual Property Organization Arbitration and Mediation Centre revised its
arbitration rules. The revision is part of a wave of recent updates of institutional arbitral rules.
The theme of paper is to analyse the scope of Arbitration and Mediation in Intellectual
Property Disputes. The paper in brief would discuss the WIPO Centre as an arbitral
institution and assesses the features of the WIPO Rules that make them suitable for the
particular challenges of IP-related disputes. The paper will discuss the question of
arbitrability of IP disputes in the context of burgeoning conflicts between non-state
enterprises in course of business and trade. The paper would also highlights the issue that
Intellectual Property disputes often implicate interim measures and technical expertise and
how the same is perceived in the international Forum. The paper would also highlights the
Indian example especially from the field of patent and trademarks where there is a trend
observe to resolve the dispute outside the court through these methods.
Theme: Law and Finance
Paper Code: F1 FE 78
Informal Financial Contracts and their Transaction Costs: Evidence from Agra
Footwear Cluster
YugankGoyal, Associate Professor, OP Jindal Global University, Sonipat
Why do informal markets resist formalizing, even when the gains of doing so outweigh its
costs? Through a primary survey in the centuries old Agra footwear cluster, we argue that the
usually provided explanations of path dependency are insufficient for a full understanding of
the stubbornness of informal markets to change. We argue that informal markets may not
break-out of informality because of deeply embedded idiosyncratic knowledge. Idiosyncratic
knowledge is acquired by individual learning processes that are shared in groups but cannot
be transferred between individuals and groups. By exploring the Agra footwear cluster we
show that institutions in informal markets hinged on idiosyncratic knowledge can’t change
easily, and that such a change would be resisted by incumbent market participants.
Manufacturers in Agra have to sell the shoes on credit. Supplying products on credit poses
the problem of credible commitments and shortage of running cash (which is crucial in the
predominantly unorganized and poor household units that Agra is characterized by). The
market has evolved an institution of credit-slips (called parchiin Hindi), which solves these
problems simultaneously. The trader who purchases the shoes issues a parchito the
manufacturer, which acts as a contractual promise, to be redeemed on the date mentioned on
the parchi. At the same time, to maintain cash flow in the market, there are middlemen who
buy these parchis anytime, charging an interest rate, which depends on the goodwill and
reputation of the trader who has issued the parchi. This incentivizes the trader to fulfill the
promise duly (poorly reputed traders’ parchis are sold at higher interest rates which is costly
for manufacturers). The parchis in effect therefore, act as a commercial paper.
Through my primary survey, I have discovered that the average interest rate of these parchis
(17%) is significantly higher than formal lending rates of the banks (11.5%) for comparable
capital. In exploring why do manufacturers still prefer informal lending, I estimate the
transaction costs of banks in India for working capital loans.
Paper Code: F1 FE 79
Role of FSB as a Macro-Prudential Regulator in the Global Financial Regulatory
System
Hitesh Thakkar, Assistant Professor, Gujarat National Law University, Gandhinagar
Dr. Ranita Nagar, Professor of Economics, Gujarat National Law University, Gandhinagar
Abstract
Global financial regulatory system (GFRS) evolved and developed after post G-20 London
Summit where Financial Stability Board (FSB) emerged as a Macro-prudential regulator
(MaPR). In GFRS, the focus shifted from micro-prudential regulation to macro prudential
regulation. The stability and sustainability of global financial system is the mandate of Marco
Prudential Supervision as stated in Article 2 of the Charter of the Financial Stability Board.
However, FSB does not create any legal rights or obligations towards member nations
(Article 23, Charter of FSB). Though FSB is part of soft law, due to peer group pressure and
international goodwill, the member nations are strictly implementing the recommendations or
standards as agreed upon by them. The institutionalizing of FSB will increase economic
efficiency and it will incentivize non-FSB members to implement international financial
standard. FSB can play a key role and mark its footprint as a Supra Global Financial
Authority or World Financial Organization (WFO) in the global financial regulatory
system.
Paper Code:
Evaluating effects of Perceived Cybercrime risk on Mobile App Payment Users in
Tier-1 cities in India
Abhishek Behl, Assistant Professor, Symbiosis Center for Management and Human Resource
Development, Pune
Abhinav Pal, Assistant Professor, Symbiosis School of Economics, Pune
Abstract
Innovations in technology have integrated smart phones with the banking industry. The
dependence on smart phones for transaction is promoted by the banks and is translated by the
end users as well. The internet dependent application based generation is also undergoing a
pervasive threat of cybercrime which is a result of inappropriate knowledge and skill of using
the application based payments. Although, the degree and the spread of the economic impact
is difficult to quantify, yet the problem of cybercrime has engulfed multiple users. The paper
presents a projected framework which would draw variables from technology acceptance
models and integrate them in tandem with cyber criminology. The linkages between the
variables are tested with data collected from urban users where rate of diffusion of mobile
application based payments are high. The effects are gauged by taking into consideration the
perceived risk of cybercrime and adjusted for the user’s confidence online. The hypothesized
relationships also link primary variables like trust, perception of users, societal influence and
awareness. The data is collected from tier-1 cities in India and the study has made use of
Structural equation modeling to test the hypotheses. The results reflect that there is an
adverse effect of perceived risk of cybercrime on the use of apps for transacting online. It is
also found that there has been a strong correlation between the victims of cybercrime and
their frequency of usage before and after the crime. The results also reflect that confidence of
users is inversely dependent on application based users cybercriminal risk which increases
their tendency to use mobile apps for making transactions. The results would help the online
merchants to devise better standards to retain customers who underwent cybercrime to
control adverse publicity through societal influence.
Keywords: Technology Acceptance Model, Cyber Crime, Mobile Apps, Tier-1 cities, India,
Consumer Behavior
Paper Code: F1 Sphss 73
What drives level of Financial Inclusion: Study with reference to India?
Dr Ravindra Tripathi, Assistant Professor, Department of Humanities and Social Sciences,
Motilal Nehru National Institute of Technology, Allahabad
Ms. Priyanka Tandon and Nikhil Yadav, Research Scholars, Department of Humanities and
Social Sciences, Motilal Nehru National Institute of Technology, Allahabad
Abstract
Financial Inclusion is becoming the buzzword amongst the policy makers and academicians.
Financial inclusion is one of the important strategies for reaching the inclusive growth of any
economy. Past studies reveals that there are number of factors that drives the level of
inclusion in an economy such as level of income, occupation, gender, education level,
financial literacy and so on. This factor varies with the cross country studies. The objective of
the present study is to find out the significant factors that determines the level of financial
inclusion with reference to India. The determinants include the per capita income as
representative for the overall wellbeing, domestic credit to the private sector as percentage of
GDP as indicator of financial depth, number of commercial bank branches per 1,00,000 adult
population as indicator of financial infrastructure and internet usage per 100 adults as
indicator technological penetration. The data collected is secondary in nature which spans
over the period 2007-2014 and collected through GLOBAL FINDEX data of World Bank.
The study employs the OLS Regression to assess the dimensions of financial inclusion. The
study finds that number of commercial bank branches, internet usage and per capita income
are the significant indicators of the level of financial inclusion but are highly correlated to
each other. So, we introduced the interaction term of number of bank branches per 1 lakh
adults and internet usage to see the interaction effect and variable found to be significant.
Finally, it can be concluded that in order to increase the penetration of the financial services
in the country banks and other formal financial institutions should world diligently in the
areas of technology, physical access and overall wellbeing
Keywords: Financial Inclusion, Per Capita Income, Technology, Access, Usage, Financial
depth
Paper Code: F1 Spm 83
Modelling Drivers of Financial Inclusion in India to aid Policy-makers –
An AHP Approach
Syed Hameedur Rahman Zaini, Research Scholar, Department of Business Administration,
Aligarh Muslim University, Aligarh
Asif Akhtar, Assistant Professor, Department of Business Administration, Aligarh Muslim
University, Aligarh
Abstract
Introduction
The importance of Financial Inclusion for the development of a nation has been well
documented in recent times. It has been widely accepted that the adoption of financial
inclusion policies is key to the overall development of India as a nation. Policy-makers over
the years have consistently proposed reforms to make financial services accessible for one
and all. The implementation of such reforms has improved the situation to some extent but
certain hindrances need to be overcome in order to make access of financial services more
wholesome.
Objectives
This paper aims to highlight the drivers of financial inclusion in India as evidenced from
literature. The role of these actors is analysed and categorised using an empirical technique
known as Analytic Hierarchy Process (AHP).
Methodology
The AHP method applied in this paper is a structured technique for organizing and analysing
complex decisions. This method has proven to be effective in various group decision-making
applications. It thus finds application in the present study to create a hierarchy among the
identified study variables by assigning weights.
Study Variables
The drivers of financial inclusion in the Indian context identified upon reviewing the relevant
literature sources comprise the input variables for the study.
Managerial Implications
The study would be relevant for policy-makers as a tool highlighting the key variables that
would need to be emphasized for the wider outreach of future financial inclusion programs. It
would also help in the identification of factors which have driven and inhibited financial
inclusion programs and this knowledge will help in framing a future course of action.
Keywords: Financial Inclusion, Analytic Hierarchy Process, Policy, India, MCDM
Paper Code: F1 Sppub 38
Financial Literacy and Financial Inclusion: A Case Study of Punjab
Neha Sharma, M.Phil., Department of Public Administration, Panjab University,
Chandigarh (U.T.). India
Abstract
The successful inclusion of the financial services to the people of the country requires good
level of financial literacy among them.By looking the strong relationship between financial
literacy and financial inclusion, the present study aims to identify the main factors affecting
the level of financial literacy in India with special reference to Punjab State.The study is
based on the primary data collected from three main districts (Amritsar, Jalandhar, &
Ludhiana),one each from all threeregions of Punjab namely, Majha, Doaba, and Malwa. Data
have been collected from both rural and urban areas of each districts and comparative
analysis has been conducted to show the differences in level of financial literacy within the
district and between the districts. Chi-square test has been utilized to check the association
between respondents’ characteristics and their existing level of financial knowledge. The
whole analysis reveals that there exist differences in the level of financial literacy between
male and female respondents and it is less in female respondents. These differences are also
lies between urban and rural respondents. The level of financial literacy is higher in urban
areas than in rural areas. Finally, the respondent’s qualification and its parental qualification
also affect the level of financial knowledge in Punjab. On the basis of results, the study
recommends the adoption of policies related to the women empowerment in both urban and
rural areas which may help in reducing the gap between financial literacy among two areas
and improve the overall level of financial literacy. The improvement in the level of financial
literacy will further enhance financial inclusion as per the linkage between two.
Keywords: Financial Literacy, Financial Inclusion, Punjab, Rural, Urban
Theme: Constitutional Functionalities
Paper Code: G1 FE 35
Corporate Investment, Court Enforcement and Political Federalism
Nishant Vats, Centre for Advanced Financial Research and Learning (CAFRAL), Reserve
Bank of India, Fort, Mumbai
Abstract
I exploit the variation in judicial efficiency across Indian states together with heterogeneity in
firm financing constraint and distress indicator to estimate the effect of court enforcement on
firm investment. I show that financially constrained firms registered in states with high
judicial inefficiency exhibit lower investment, an effect that was exacerbated during the
crisis. As well, investment is lower for distressed firms in states with high labor activism.
Taken together, the evidence is consistent with the law and finance literature and suggests
that quality of contract enforcement and heterogeneity in creditor protection plays a key role
in influencing firm investment.
Keywords: Judiciary, Financial Constraint, Financial Distress, Manufacturing Firms
Paper Code: G1 Spl 16
COLLEGIUM SYSTEM IN INDIA: THE SUITABILITY OF THE EXISTING PARADIGM
Shreyas Santra, Rajiv Gandhi School of Intellectual Property Law, IIT Kharagpur
Kavita Sharma, Rajiv Gandhi School of Intellectual Property Law, IIT Kharagpur
ABSTRACT
The Supreme Court of India struck down the National Judicial Appointments Commission
Act, 2014, for violating the basic structure of the Indian Constitution, i.e., the independence
of judiciary. The Court, however, remained silent on a very crucial question: whether the
method of judicial appointment constitutes an important feature of judicial independence? In
developed countries, it is the conduct of judges during their tenure which is the defining
feature and not the method of their appointment. Although the political affiliation or ideology
of the judges influences their appointment, the judiciary is said to be independent. The same
is not true for India, where the judiciary and judicial appointments must be apolitical in order
to be independent. Why does such a dichotomy exist? Is the collegium system of appointment
the most suitable method of appointment for India? This research paper attempts to answer
this fundamental question about an important constitutional functionary.
The paper will describe the constitutional scheme for the appointment of judges to the higher
judiciary. It will refer to the influential Three Judges Case and the recent NJAC Case to
analyse the judicial interpretation of the constitutional scheme. It will describe the scheme of
appointment in advanced countries like USA, UK, Australia and Canada to highlight the
dichotomy in the method of judicial appointments. It will examine the link between the
method of appointments and the efficiency of the justice delivery system. This will involve
the economic analysis of the law propounded by Ronald Coase. It will conclude by
determining whether the collegium system of appointment is suitable for India. The paper
will adopt doctrinal methods of research. Comparative law method will be applied for
comparing the Constitutions of different countries. Primary and Secondary literature,
Constitutional texts, domestic legislations, critical writings and judicial pronouncements will
form the basis of research.
Keywords – judicial appointment, independence of judiciary, law and economics
Paper Code; G1 Sue 11
Law and Economics of Manipulation of Census: Evidence from India
Vikas Kumar, Azim Premji University, Bangalore
Ankush Agrawal, IIT Delhi, Delhi
Abstract
Census is a highly politicised and contested administrative activity in multi-ethnic societies. In
India, Census Act, 1948 (as amended in 1994) stipulates punishment with fine and/or
imprisonment for interfering with the process of enumeration and related activities. However, the
punitive provisions of this Act are rarely used and have certainly not been invoked to deal with
cases of politically motivated, mass manipulation of census. This paper examines the limits of
legal measures to prevent manipulation of demographic statistics. The paper presents a model in
which communities manipulate headcount with an eye on public resources and shows that the
degree of manipulation by a community is directly proportional to the manipulation by other
communities and independent of the fine for manipulation. The insights drawn from the
theoretical model are examined in light of the experience of the Indian state of Nagaland with the
help of analysis of sub-district level data for the period 1981-2011.
Keywords: Census, ethnic conflict, law, manipulation, political economy of statistics
JEL Classification: H39, K19, Z18
Paper Code: G2 FE 26
Should a Constitution contains Explicit Anti-corruption Mechanism?
Supruet Thavornyutikarn, Lecturer, Faculty of Economics, Thammasat University,
Bangkok,
Abstract
There is a never-ending debate on whether a constitution should have
clauses sketching a mechanism for the state to actively counter corruption. From
the outset, it seems desirable. To many laypersons and academics – particularly
anti-corruption advocates, it supposes to be the purpose of the constitution. This
paper argues that the more the state has the power/authority prescribed by the
constitution, the chance of corruption increases and vice versa. In order to,
philosophically, minimise corruption, the minimal state is needed. Thus, there is
no explicit need for having any clause on anti-corruption in constitution. We
should carefully inspect the real definition of constitution – which is a kind of
social contract where people relinquish their rights and freedom to be controlled
by the state. More state power implies more likelihood of corruption – as an abuse
of power for private benefits.
A dilemma arises when people expect more from state. There are many
things for the state to do, ranging from pure public goods, to market intervention,
and to a mere market transaction where the state acts simply as a buyer or seller.
State and market are co-existed. If it is too expensive to allocate resources through
market, a use of hierarchy cannot be denied. Since the transaction through
hierarchy is not totally transparent (i.e. costless), corruption might be associated
with its decision-makers. Particularly, governments of developing countries are
demanded to be pro-active in order to stimulate the development, their
constitutions might predetermine a lot of role to play, many institutions and
hierarchies to be instituted, many non-market decision-makings, and, eventually,
more opportunity for the abuse of authority. Thus, more demanding constitution
automatically implies more corruption and the mechanism to fight corruption
would certainly create more corruption.
Keywords: Corruption, Constitution, Public Participation, Monitoring Cost, State,
Market
Paper Code: G1 P 13
Why Court Delays Affect Home Loans: An Abstract
Ramanand Mundkur, Advocate, High Court of Karnataka Managing Partner, Mundkur Law
Partners Bangalore, India
In India, about 16,000 subordinate judges have been tasked with disposing of 21 million
pending cases. At current rates, some estimate the backlog in civil cases can never get
cleared, and that it will take more than 30 years to clear the backlog in criminal cases.
Commentators have also spoken about how this docket-explosion has resulted in
docketexclusion,
where hundreds of millions of disputes can’t get to court because they’ve been ‘squeezed out’
by the present backlog.2 But the court delays have engendered an even more widespread
problem that has been insufficiently examined.
People have changed the way in which they conduct transactions to offset the difficulty of
securing rights through courts. These changes have resulted in higher transaction costs across
the board. Put simplistically: court delays affect home loans.
Take the example of loan transactions themselves. Nearly all private-sector lending in India
(other than credit card debt) is secured. Lenders insist on collateral to mitigate the problem of
enforcing creditor rights through courts. This level of secured lending comes with high,
hidden economic costs.
First, with secured lending, the loan decision is not primarily driven by the economics of the
activity being funded, but by the value of the collateral securing the funding. Second, loan
defaults and non-performance don’t just impact the funded activity—they also impact
otherwise healthy assets provided as collateral. Third, encumbering capital assets creates
artificial scarcity in those assets, which distorts signalling and capital allocation. Fourth, the
encumbered assets often cannot be used for other (potential revenue-generating) economic
transactions. Finally, secured lending makes encumbered assets vulnerable to value erosion
from unrelated transactions. All of this increases the cost of funds in India.
The present paper will examine these externalities in detail and assess approaches that might
be used to address the problem.